Croatia provides attractive conditions for investors and is working in the right direction. Attention should be given to better communicating its vision and policies as well as strengthening the robustness of policy goals and commitments.
The risks breach of State obligations and discrimination between foreign and domestic investors are on the same level as in 2018. Unpredictable policy and regulatory change remains the area with the highest risk, although its level has gone down by a point.
Croatia has a good performance on three of the EIRA indicators, and a moderate performance on one indicator. It has maintained a score of 74 on the indicator rule of law, 69 on regulatory environment and investment conditions and 68 on management of decision-making processes. The score for foresight of policy and regulatory change has increased from 49 to 52.
On a more detailed level, Croatia’s overall sub-indicator performance is good. The highest scoring sub-indicator is respect for property rights with 83 points. Transparency (74) and regulatory effectiveness (72) have received the same scores as in 2018. They are followed by management and settlement of investor-State disputes and restrictions on FDI, both at 65 points. Institutional governance stands at 63 points. The score for communication of vision and policies has increased and is now at 55. Robustness of policy goals and commitments remains the lowest-scoring subindicator with 48 points.